Short-term rentals · NMLS #1707407

Short-Term Rental Loans for Airbnb and VRBO Investors

A short-term rental loan is a DSCR loan built for Airbnb, VRBO and other vacation rentals. Instead of your personal income, the lender qualifies you on what the property can earn as a short-term rental, so you can buy or refinance without tax returns.

Get my STR quote See today's DSCR rates

Airbnb & VRBOincome qualifies

100% or 80%of STR income, by lender

No tax returnsqualify on bookings

AirDNA OKfor purchases

The basics

How short-term rental loans work

Short-term rental loans have more moving parts than a standard rental loan: how the income is counted, HOA and city rules, and insurance can each make or break the deal. As a broker, we shop lenders that handle these details differently, so one lender's "no" doesn't end your deal.

A short-term rental loan works like any DSCR loan: the lender divides the property's rental income by the monthly payment (principal, interest, taxes, insurance and HOA dues). What's different is how the income is counted. Long-term rentals use a lease or the appraiser's market rent. Short-term rentals use nightly booking income, which lenders estimate in one of a few ways.

Short-term rentals

How lenders count short-term rental income

Booking history: if you already own and operate the property, many lenders use 12 months of booking statements from Airbnb, VRBO or your property manager.
Market data: for a purchase, many lenders accept a short-term rental projection from a data provider such as AirDNA, based on similar listings nearby.
Appraiser's estimate: some lenders have the appraiser complete a short-term rental income analysis alongside the appraisal.
100% or 80%: some lenders use 100% of the projected or historical income, while others count about 80% to allow for cleaning, platform fees and vacancy. That difference alone can decide whether a property qualifies, so it's one of the first things we shop.

Example: a projection shows $78,000 a year in gross bookings. A lender counting 80% uses $62,400, or $5,200 a month. If the full payment is $4,300, the DSCR is about 1.21. A lender counting 100% uses $6,500 a month, for a DSCR of about 1.51. Read more about DSCR loans for Airbnb, and estimate rents with our DSCR rent estimate tool and DSCR calculator.

Requirements

Short-term rental loan requirements

These are typical ranges across the lenders we work with.

	Typical range
Credit score	Usually 680–700+ for the best options
Down payment	Usually 20–25%; max loan-to-value is often about 5% lower than on a long-term rental
DSCR	Often 1.0 or higher; some lenders go lower
Income	12-month booking history, a market data projection, or an appraiser's short-term rental analysis
Experience	Some lenders require prior rental or hosting experience; others accept first-time investors
Reserves	Usually several months of payments in the bank
Ownership	Personal name or LLC
Property types	Single-family homes, 2–4 units, townhomes and many condos; condo-hotels and some non-warrantable condos need special programs

Loan options

Your short-term rental loan options

We have DSCR options that use booking history or market data, plus lite doc and full doc options. The more documentation you provide, the lower the rate tends to be. We'll walk through which options you'd likely qualify for and which one fits your timeline.

From the broker

6 short-term rental mistakes I see (and how to avoid them)

"Short-term rentals are where I see the most deals fall apart late. The numbers look great on a projection, then the HOA documents, the city, the insurance quote or the appraiser's rural check shows up. Almost all of it can be caught before you write the offer."

— Trevor Gravink, Mortgage Broker, ReBroker Buddy (NMLS #1707407)

Not reading the HOA documents. Some HOAs ban short-term rentals or limit how often you can rent. Others charge fees that aren't in the listing. I recently had a short-term rental in a community with mandatory membership fees that only showed up in the HOA documents. Many DSCR lenders wouldn't accept those fees, so I found one that would, moved the loan, and we still closed on time. Get the HOA documents early and read the rental rules and fees.
Assuming the city allows it. Many cities and counties require a short-term rental permit, cap the number of permits, or ban them in certain zones. Rules change often. Check the local rules for the exact address before you count on short-term income.
Underestimating insurance. Short-term rentals need a policy that covers guests, and it costs more than a standard landlord policy. In California wildfire areas, many carriers won't write new policies, and you may need the California FAIR Plan plus a second policy. In Florida, wind coverage and hurricane deductibles can be a large part of the cost. Everywhere, check FEMA's flood map. Get a real quote before you write an offer. More on DSCR insurance requirements.
Not flagging a rural property. Vacation rentals are often in mountain, lake and beach areas that appraisers classify as rural. Many DSCR lenders won't lend on rural properties, and those that do often add a pricing adjustment or lower the max loan amount. Most borrowers don't know to mention it, and I regularly see other lenders and brokers miss it. Find out up front so the deal doesn't reprice after the appraisal.
Trusting the seller's or listing's income. A seller's best year, or a projection that includes peak-season rates all year, won't hold up. Lenders use booking statements, market data or the appraiser's analysis, and may count only part of it. Run your numbers on the lender's method, not the listing.
Forgetting the property taxes reset. In many states, taxes go up after a sale, and you won't keep the seller's homestead exemption. Budget on the new tax bill, not the seller's.

Weigh it up

Pros and cons of short-term rental loans

Pros	Cons
Qualify on short-term rental income, not tax returns	Usually more down payment than a long-term rental
Higher income can mean a stronger DSCR	HOA and city rules can limit or ban rentals
Booking history or market data accepted	Insurance costs more
Close in an LLC	Some lenders exclude first-time investors
No limit on the number of financed properties at many lenders	Income is seasonal and can change with local rules

What clients say

Reviews from our clients

FAQ

Short-term rental loan FAQ

Can I get a DSCR loan for an Airbnb?

Yes. Many DSCR lenders accept short-term rental income from booking history or market data projections.

How do lenders calculate Airbnb income for a purchase?

Most use a market data projection, such as AirDNA, or an appraiser's short-term rental analysis based on similar listings nearby. Some lenders use 100% of that income; others count about 80%.

Can I buy my first investment property as a short-term rental?

Sometimes. Some lenders require prior rental or hosting experience, while others accept first-time investors, often with a larger down payment. See DSCR loans for first-time investors.

Can I refinance my Airbnb into a DSCR loan?

Yes. If you have 12 months of booking history, many lenders use it to qualify the loan. See DSCR refinance.

Do short-term rental loans allow condos?

Many do. Condo-hotels and some non-warrantable condos need specialty programs, so tell us about the building early.

Can I own the property in an LLC?

Yes. Most short-term rental lenders allow LLC ownership. See DSCR loans for LLCs.

Keep exploring

More investor loans

Get started

Get your short-term rental loan quote

Answer a few quick questions about the property and your plans. There's no credit check to see your options, and we'll shop your scenario across our lenders.

Prefer to talk first? Call (619) 404-6637 or book a free consultation.

Business-purpose loans for non-owner-occupied investment properties. Programs, guidelines and ranges shown are typical of the wholesale lenders we work with and can change at any time. Not a commitment to lend. Broker Buddy LLC, Trevor Gravink NMLS #1707407.